BNS vs. BMO

Last updated Jun 4, 2026

BNS (The Bank of Nova Scotia) and BMO (Bank of Montreal) are both stocks. Both operate in the Banks - Diversified industry within the Financial Services sector. Over the past 10 years, BNS returned 11.04%/yr vs 14.84%/yr for BMO. A 0.69 correlation means they provide meaningful diversification when combined.

Performance

BNS vs. BMO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in The Bank of Nova Scotia (BNS) and Bank of Montreal (BMO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, BNS achieves a 11.35% return, which is significantly lower than BMO's 27.20% return. Over the past 10 years, BNS has underperformed BMO with an annualized return of 11.04%, while BMO has yielded a comparatively higher 14.84% annualized return.

BNS

• 1D: -0.47%
• 1M: 4.82%
• YTD: 11.35%
• 6M: 16.70%
• 1Y: 58.05%
• 3Y*: 25.35%
• 5Y*: 10.34%
• 10Y*: 11.04%

BMO

• 1D: -1.84%
• 1M: 8.25%
• YTD: 27.20%
• 6M: 30.24%
• 1Y: 56.23%
• 3Y*: 29.03%
• 5Y*: 13.96%
• 10Y*: 14.84%

*Multi-year figures are annualized to reflect compound growth (CAGR)

BNS vs. BMO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
BNS The Bank of Nova Scotia	11.35%	45.11%	17.55%	8.53%	-28.05%	40.62%	1.70%	17.49%	-18.28%	21.83%
BMO Bank of Montreal	27.20%	39.59%	2.98%	15.24%	-12.41%	48.15%	3.34%	23.51%	-15.02%	16.63%

Correlation

The correlation between BNS and BMO is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.77
Correlation (All Time) Calculated using the full available price history since Sep 14, 1999	0.70

The correlation between BNS and BMO has been stable across timeframes, ranging from 0.69 to 0.77 - a consistent structural relationship.

Fundamentals

Market Cap BNS : $72.75B BMO : $84.15B
EPS BNS : $8.23 BMO : $14.56
PE Ratio BNS : 9.75 BMO : 11.15
PS Ratio BNS : 1.32 BMO : 1.41
PB Ratio BNS : 0.94 BMO : 1.08
Total Revenue (TTM) BNS : $70.57B BMO : $77.05B
Gross Profit (TTM) BNS : $33.43B BMO : $34.51B
EBITDA (TTM) BNS : $13.61B BMO : $14.21B

Return for Risk

BNS vs. BMO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

BNS

BNS Risk / Return Rank: 94
BNS Sharpe Ratio Rank: 96
BNS Sortino Ratio Rank: 97
BNS Omega Ratio Rank: 96
BNS Calmar Ratio Rank: 89
BNS Martin Ratio Rank: 94

BMO

BMO Risk / Return Rank: 93
BMO Sharpe Ratio Rank: 94
BMO Sortino Ratio Rank: 94
BMO Omega Ratio Rank: 93
BMO Calmar Ratio Rank: 90
BMO Martin Ratio Rank: 94

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

BNS vs. BMO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for The Bank of Nova Scotia (BNS) and Bank of Montreal (BMO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	BNS	BMO	Difference
Sharpe ratio Return per unit of total volatility	3.51	2.99	+0.52
Sortino ratio Return per unit of downside risk	4.95	3.91	+1.05
Omega ratio Gain probability vs. loss probability	1.65	1.51	+0.14
Calmar ratio Return relative to maximum drawdown	4.37	4.86	-0.50
Martin ratio Return relative to average drawdown	17.11	18.04	-0.93
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

BNS vs. BMO - Sharpe Ratio Comparison

The current BNS Sharpe Ratio is 3.51, which is comparable to the BMO Sharpe Ratio of 2.99. The chart below compares the historical Sharpe Ratios of BNS and BMO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	BNS	BMO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.51	2.99	+0.52
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.66	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.50	0.63	-0.12
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.58	-0.05

Drawdowns

BNS vs. BMO - Drawdown Comparison

The maximum BNS drawdown since its inception was -63.65%, smaller than the maximum BMO drawdown of -68.17%. Use the drawdown chart below to compare losses from any high point for BNS and BMO.

Drawdown Indicators

	BNS	BMO	Difference
Max Drawdown Largest peak-to-trough decline	-63.65%	-68.17%	+4.52%
Max Drawdown (1Y) Largest decline over 1 year	-13.36%	-11.62%	-1.74%
Max Drawdown (3Y) Largest decline over 3 years	-19.51%	-18.56%	-0.95%
Max Drawdown (5Y) Largest decline over 5 years	-39.12%	-33.94%	-5.18%
Max Drawdown (10Y) Largest decline over 10 years	-46.29%	-50.97%	+4.68%
Current Drawdown Current decline from peak	-0.52%	-1.84%	+1.32%
Average Drawdown Average peak-to-trough decline	-11.02%	-11.43%	+0.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.40%	3.13%	+0.27%

Volatility

BNS vs. BMO - Volatility Comparison

The current volatility for The Bank of Nova Scotia (BNS) is 5.17%, while Bank of Montreal (BMO) has a volatility of 5.56%. This indicates that BNS experiences smaller price fluctuations and is considered to be less risky than BMO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	BNS	BMO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.17%	5.56%	-0.39%
Volatility (6M) Calculated over the trailing 6-month period	13.09%	15.63%	-2.54%
Volatility (1Y) Calculated over the trailing 1-year period	16.62%	18.91%	-2.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.54%	21.33%	-1.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.93%	23.66%	-1.73%

Dividends

BNS vs. BMO - Dividend Comparison

BNS's dividend yield for the trailing twelve months is around 3.97%, more than BMO's 2.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BMO Bank of Montreal	2.96%	3.55%	4.60%	4.76%	4.62%	3.95%	4.15%	3.96%	4.78%	4.45%	4.73%	5.74%
BNS The Bank of Nova Scotia	3.97%	4.17%	5.85%	8.56%	6.39%	5.09%	4.93%	3.53%	6.34%	4.80%	5.24%	8.13%

Financials

BNS vs. BMO - Profitability Comparison

The chart below illustrates the profitability comparison between The Bank of Nova Scotia and Bank of Montreal over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

BNS - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, The Bank of Nova Scotia reported a gross profit of 8.40B and revenue of 17.18B. Therefore, the gross margin over that period was 48.9%.

BMO - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Bank of Montreal reported a gross profit of 8.78B and revenue of 19.26B. Therefore, the gross margin over that period was 45.6%.

BNS - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, The Bank of Nova Scotia reported an operating income of 3.43B and revenue of 17.18B, resulting in an operating margin of 20.0%.

BMO - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Bank of Montreal reported an operating income of 3.50B and revenue of 19.26B, resulting in an operating margin of 18.2%.

BNS - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, The Bank of Nova Scotia reported a net income of 2.59B and revenue of 17.18B, resulting in a net margin of 15.1%.

BMO - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Bank of Montreal reported a net income of 2.63B and revenue of 19.26B, resulting in a net margin of 13.6%.

Frequently Asked Questions

Can I hold both BNS and BMO in my portfolio?

BNS and BMO have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, BNS or BMO?

BMO has higher volatility (5.56%) compared to BNS (5.17%). In terms of maximum drawdown, BNS dropped -63.65% vs BMO's -68.17%.

Which has better risk-adjusted returns?

BNS currently has the higher Sharpe Ratio (3.51 vs 2.99), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.